Welfare Reform that Really Works #4

WISCONSIN CALLS IT WELFARE REPLACEMENT

Wisconsin is changing the culture of welfare. And according to Robert Rector of the Heritage Foundation, Wisconsin has the most successful welfare reform program in the nation. Welfare caseloads in Wisconsin have declined 43.9 percent during the period of January 1987 to June 1996 (52% through December '96). This contrasts to an increase in that same time period of 31.3 percent in Washington state and a nationwide average increase of 16.9 percent.

Since taking office in 1987, Wisconsin's Governor Thompson has made welfare reform one of his top priorities. Changing the "expectations" surrounding welfare, he has introduced more than ten reform initiatives. This successful welfare-to-work program "Wisconsin Works" is currently transitioning to what they call "W-2"--welfare replacement, encompassing even more innovation.

Results-Based Policies

Caseload decline occurs due to a combination of decreased enrollments and increased exists. Both sides are addressed in Wisconsin's program initiatives. Governor Thompson's efforts have paid off: Wisconsin has reduced welfare caseloads more than any state in the nation. Reform efforts are almost 10 years old.

By fall of 1997, Wisconsin will have implemented W-2, ending authorization for Aid to Families with Dependent Children (AFDC). Replacing it is a jobs and related services network. Key features of W-2 are:

• No automatic welfare check.

• All parents will be required to work to support their families.

• The system will help find the best alternatives to work toward self-sufficiency, and there will be a place for everybody to work within their capabilities.

• Opportunities for advancement are provided without the usual perverse incentives.

• Child support payments will go to working custodial parents and their children.

• A unified delivery system will be funded based on performance.

The following chart describes how all welfare recipients can participate in W-2 Self Sufficiency:

The W-2 agency will operate the four major components in an integrated manner so that the participant is always entering the highest (i.e., least subsidized) workforce stage possible, moving up at the earliest opportunity.

Self-Sufficiency Focus
Those entering W-2 for help will go to multi-disciplinary Job Centers and will initially meet with a Financial and Employment Planner (FEP). The FEP's are trained advisors, who will help applicants with social service and employment options to facilitate the maximum degree of self-sufficiency.

For those in immediate need of income, the Financial and Employment Planner can offer temporary community service jobs, similar to regular Community Service Jobs (CSJs) but available on short notice for short periods while an individual is looking for permanent employment.

Job access loans are small, flexible loans designed to help pay for job-related expenses (e.g., work uniforms or job-specific tools.) They can be repaid in cash or through combination of cash and volunteer work.

Twenty seven local Job Centers will be added to the current thirty-five. In many localities, the county welfare office and Job Service are co-located in the Job Center.

The state has completed selection through an Request for Proposal (RFP) process in which all public and private organizations were able to compete. This assures that the most effective possible agencies will be managing the program. Contracts will be defined by county boundaries.

W-2 Transitions:
Wisconsin expects that even those with limitations should do some work in return for support, while participating in activities that can assist them in moving toward greater self-sufficiency. For those with significant physical or mental limitations, such work could be in a sheltered workshop or specialized work site.

Child Care:
Under the current system, child care is available to all families on AFDC. Under W-2, child care will be made available to all eligible families with low income and with low assets who need child care to be able to work. Families can select from a wide range of providers through the use of child care vouchers.

Wisconsin leads national welfare reform because they replace welfare with work. Both the providers and receivers of assistance in Wisconsin have changed the way they think about welfare. Work means self-sufficiency and dignity, commodities not available unless welfare means work. Wisconsin proves it.

Prepared by Karen Woods, Research Analyst, (360)956-3482

Evergreen Freedom Foundation P.O. Box 552, Olympia, WA 98507 Phone: (360) 956-3482, Fax: (360) 352-1874 Email: effwa@effwa.org